AirAsia X has reportedly increased the fares of all its flights between 30% and 40%. And the reason it has done so is due to soaring jet fuel prices.
Pricing for jet fuel has risen from an average of US$90 (~RM363) to an average of US$200 (~RM806) per barrel. In relation to that, the fee to offset jet fuel costs has risen by 20%, which is why the company has raised its fare by up to 40%.
“I will be paying whatever the market price is,” Bo Lingam, AirAsia’s CEO, said during a media briefing on Monday. Fares will be reviewed periodically, he added.
In addition to the fare hike, AirAsia also said that it will be reducing capacity on certain routes, as well as dump non-performing routes, as well as implement cost optimisation via fleet optimisation and ancillary cuts.
Why Is This Happening?
If you’ve been living under a rock for the last couple of months, here’s what’s happened. On 28 February 2026, the US and Israel launched a surprise attack against Iran, thus initiating the ongoing Iran War. As an immediate response to their actions, Iran announced that the Strait of Hormuz was closed to all, save for a handful of nation-states that it deems to be friendly. Malaysia, fortunately, is one of those countries that has been allowed to pass through the Strait, unhindered and free from Iran’s “toll booth” system that is reportedly charging as much as US$2 million (~RM8.07 million) for safe passage through what is now one of the world’s biggesst flashpoints.
Tony Fernandes, founder and adviser of AirAsia, says that the aviation group will weather the storm. “We have been through so many, it’s nothing new to us. Ukraine was just a few years ago, oil then went up to US$120 per barrel, plus Covid-19 at the same time, and we came through that,” he said.
(Source: The Edge)
